The Argentine government sent a letter to the president of the United States, Joe Biden, signed by the leaders of Brazil, Mexico, Chile, Colombia, Bolivia and Paraguayin which its support to Argentina is requested in the negotiations that it is carrying out with the IMF to review the credit agreement that it maintains with the organization.
“We ask you with respect and affection to support Argentina in the negotiations (…). The common and shared principles in the Americas, around democracy, human rights and social inclusion should guide us to find a solution quickly and effectively for Argentina”, expresses the letter, released publicly by the Chancellery of the Government of Alberto Fernández.
This week Argentina must pay maturities to the IMF for 2,700 million dollars, of which the payment process for 1,900 million has already been activated.
To face the new maturities, and in the midst of the great fiscal imbalances and shortage of dollars that the country is dragging, The Government is advancing in negotiations with the IMF to redefine the agreement signed in 2022 with which the original credit was refinanced.
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What the letter says
The letter recalls that Argentina has been working “relentlessly” to deal with the “exceptional” debt contracted with the International Monetary Fund (IMF)In reference to loan of 44,000 million dollars granted in 2018 during the Executive of Mauricio Macri (2015-2019).
Said loan, which was refinanced a year ago, is being renegotiated again by the current Argentine Executive, due to the effects they have had on the economy the pandemic, the war in Ukraine and a severe drought.
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Extraordinary circumstances call for extraordinary responses, as extraordinary as the debt overhang caused by the IMF loan.
“It is not feasible and neither is it desirable that the demands that do not duly consider the change in circumstances submerge Argentina in an unnecessary crisis that interrupts the ongoing recovery,” adds the text, which stresses that “the inflexibility of the IMF to review the parameters of the agreement in the context of the described drought runs the risk of turning a liquidity problem into a solvency one”.
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“Extraordinary circumstances call for extraordinary responses, as extraordinary as the over-indebtedness caused by the IMF loan, which is one of the main causes of the current situation. We seek a solution that allows Argentina’s growth, job creation, and the increase in its exports,” the leaders stated in the letter.
“All of them are necessary conditions so that the country, in turn, can face the maturities of the aforementioned loan”they remark
the brazilian Luiz Inacio Lula da Silvathe Mexican Andres Manuel Lopez Obradorthe Colombian Gustavo Petrothe Chilean gabriel boricthe Bolivian Luis Arce and the Paraguayan Mario Abdo Benitez they sign the letter.
Alberto Fernandez, President of the Argentine Nation, He thanked “deeply”, on Twitter, the support of his colleagues, which he considered “another sign” of strength “as a region” if we work “in unity”.
INTERNATIONAL WRITING
TIME
*With information from EFE
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